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Timmins Gold Corp T.TMM

"Timmins Gold Corp is engaged in acquiring, exploring, developing and operating mineral resource properties in Mexico. It owns and operates the San Francisco open pit and Ana Paula gold project in Guerrero and the Caballo Blanco gold project in Veracruz."


TSX:TMM - Post by User

Bullboard Posts
Comment by own_qualityon Nov 17, 2011 6:38am
324 Views
Post# 19244242

RE: I contacted investor relations

RE: I contacted investor relations Great post. Thank you. I think you made one mistake. Unless I'm wrong, the July - December drilling is 120,000 meters, not 100,000. So we will be looking at something closer to 840,000 additional reserve ounces in the 2012 43-101. That means in early 2012 we are looking at around 2.2 million ounces in reserves.Considering that transactions are being done at as much as $1,000 per reserve ounce, we could be worth up to $2 billion by then. Even under a conservative $500 per reserve ounce, we are over $1 billion. That's 3x the valuation that the current share price implies. You can add additional value for Timmins' huge land position. This solidifies our minimum value under an acquisition scenario at something well north of $1 billion.In summary: The soon to be released 43-101 should reflect around 1.33 million million reserve ounces. Next, the early 2012 43-101, reflecting the additional 120,000 meters of drilling, should add an additional 840,000 ounces to that total. This should put us above 2.1 million ounces in the reserve category.In my opinion, all of this drilling is aimed at building value and attracting a buyer. The reserves and near-term production outlook make us a very attractive acquisition target for a number of mid-tiers. The huge land position also puts us in the sights of the majors. A major would have the financial resources to take full advantage of the land position.
Bullboard Posts